It is interesting to know that the URL www.microsoft.com/opensource actually exists!

Most literature in open source software uses Microsoft as examples of the other side; representing either an old business model in software industry or a closed innovation practice. Microsoft sells software as a product, whereas firms like Google or Flickr provide software as a service etc. Also even Google is not an open source software company, they do support the openness ideology which embedded in a lot of their services via publicly accessible APIs. Even Microsoft has a Shared Source Initiative started some time ago, it does not capture much attention from the academic nor the business worlds. Until now. According to O’Reilly they are trying to certify their shared source projects (around 650 projects) as open source projects! That means finally they would use the “official” label that everybody understands.

No matter how they explain in their website, I think this is a big change for them. They acknowledge the need for open source development in some places (i.e. has something to do with supporting their customers), and they have intention to incorporate open source into their business strategies and models. From the open source community surely this looks like a victory. On the other hand, it is quite possible for Microsoft to find a new business/innovation model that sits between complete close source and complete open source. It is unknown how much or how fast change would come along when the software giant has decided to go with this direction, but definitely is going to be exciting.